Entain has confirmed reports that it will be undergoing a ‘phased exit’ of its Central and Eastern European (CEE) operations, STS in Poland and SuperSport in Croatia.
Speaking to iGaming Expert just last week, Mikolaj Cymerman, Chief Commercial Officer at Entain CEE, urged that regulators collaborate with the industry in the CEE region to tackle the surging threat of the black market.
He emphasised that across the region, the black market is one of the most significant challenges.
Cymerman stated: “Unlicensed operators typically avoid taxation, ignore responsible gambling obligations, and often operate outside consumer protection frameworks. This creates an uneven playing field and undermines the objectives of regulation.
“Constructive dialogue between regulators, licensed operators, and industry associations is essential if we want to create sustainable, consumer-focused markets.”
The move will see an initial 20% divestment of Entain CEE agreed with EMMA Capital, its joint venture partner in the region, with an implied enterprise value of €2.1bn (£1.9bn) and c10x EBITDA multiple. It is expected to be completed in the fourth quarter of 2026, subject to regulatory approvals.
Once completed, Entain’s shareholding in Entain will drop from 67.5% to 47.5%. EMMA’s shareholding will rise from 22.5% to 42.5%, while the Juroszek family foundations will maintain their existing 10% shareholding.
It will mark a significant shift for the Polish market, as developments in Austria and Finland mean STS’ reign over the market is likely to be one of the last remaining monopolies.
Poland has undergone a slight framework shift in recent months, with an increase on tax on winnings which will have had an impact on the market.
From 2026, gambling tax winnings increased for players from 10% to 15%, only adding a hurdle in Poland’s battle against the black market for the regulated gambling sector.
Cymerman had stated that “One of the biggest challenges across the region is managing uncertainty. Regulatory consultations, tax discussions and compliance requirements can all materially impact business models.”
One of the other key markets impacted by the CEE departure of Entain was Croatia, where there were also significant regulatory changes.
He emphasised that operators had been forced to adapt quickly while maintaining customer engagement and high compliance standards.
Alongside a myriad of measures implemented to tighten the framework, they also include increased scrutiny over the usage of Self-Service Betting terminals (SSBTs), which are now at the mercy of a myriad of new rules.
Central to this is a more omnichannel approach to safer gambling and KYC, with SSBTs now subject to stricter frameworks in terms of player identification, adding a significant level of friction to the retail experience.
Tax frameworks were also more stringent on players in Croatia as a result of recent developments. Taxes on winnings were increased on a progressive scale: 10% up to €1,500, 15% from €1,500 to €4,000, 20% from €4,000 to €70,000, and 30% above €70,000.
The unleveling of the playing field further towards the black market in both Poland and Croatia will have only made the CEE region less attractive to Entain as it assesses its global portfolio.
When asked if compliance measures are making it impossible for the regulated market to compete with the black market, Cymerman stated: “I would not say compliance measures themselves are the problem.
“Strong consumer protection and responsible gambling standards are fundamental to a sustainable industry.
“The challenge arises when regulatory burdens become disproportionate or are applied only to licensed operators while unlicensed competitors continue to operate with little or no enforcement.
“The objective should be to create a regulatory framework that protects consumers while ensuring that licensed operators can offer a competitive and attractive product. If regulation unintentionally pushes customers towards unlicensed alternatives, nobody benefits—not consumers, not regulators and not governments.”
What the future holds?
EMMA, MJ Foundation Fundacja Rodzinna and Fundacja Zbigniewa Juroszka Fundacja Rodzinna will enter into a separate voting agreement to grant the Juroszek family an option over their 10% holding, exercisable in three tranches during the three years following completion.
Subject to customary exceptions and effective upon transaction completion, the voting agreement will see the Juroszek family assign the full voting rights attached to their shares to EMMA, resulting in EMMA having majority control of the Entain CEE joint venture from completion.
Following completion of the transaction, a revised shareholders’ agreement for the joint venture will take effect. This will include customary board representation and minority protection rights reflective of Entain’s globally regulated business status, as well as appropriate rights to facilitate Entain’s joint venture exit.
Stella David, Chief Executive Officer of Entain, commented: “Our initial divestment is a decisive first step towards Entain fully exiting Entain CEE and reflects our ongoing focus on maximising value for shareholders. This enables us to unlock the value created by our Croatian and Polish businesses’ and demonstrates our robust capital allocation discipline.
“Driven by structural growth across our globally scaled portfolio and our improving operational execution, I am confident in our ability to deliver strong future cash-generation. Entain remains well positioned to be a long-term industry winner.”
The phased exit will have a total cash consideration of approximately €425m, with €395m payable on completion, with an additional payment early next year to reflect FY26 performance.
Entain will use net proceeds from the transaction to reduce its outstanding debt, with little to no significant impact on its earnings per share and adjusted cashflow.
The operator noted that its board has sought an Entain CEE exit to unlock portfolio value, with evaluations to exit its remaining minority shareholding continuing. Future proceeds from the exit will be used to reduce the group’s reported leverage below 3x and excess capital returned to shareholders.
Post the 20% divestment, Entain CEE will no longer be fully consolidated into the Group’s financial statements, but until a full exit is achieved, it will continue to recognise its share of Entain CEE profits and dividends.
Taking the deal into account, Entain has updated its FY26 guidance:
- Online NGR 5%-7% growth in constant currency reiterated (on a like-for-like basis).
- Online EBITDA margin in the range of 21-22% (previously 23%-24% with Entain CEE).
- Remain comfortable with market expectations for FY26 Group Underlying EBITDA.
- Remain on track to generate c£500m of annual adjusted cashflow in 2028.
Entain will provide further guidance details during its interim results on 13 August 2026.
